Treasury yields edge up as investors ready for Fed’s policy update

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What strategists and traders say

“The FOMC is likely to leave rates, the pace of asset purchases and guidance all unchanged today,” wrote strategists at UniCredit in a research report.

“The[FOMC] will begin to formally discuss plans for tapering asset purchases at this meeting, but we do not expect any clear hint on the timing or composition of tapering. There are two main reasons for this. First, there are a range of views on the FOMC regarding tapering, and it will likely take a while to build a consensus. Second, most FOMC participants would like to wait for incoming data to be able to make a clearer assessment of the economy and the progress that has been made toward the Fed’s goals, as reopening effects and fiscal-stimulus effects fade and temporary factors weighing on labor supply ease,” the strategists wrote.

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